Motilal Oswal has reiterated its buy rating on Hindustan Aeronautics Ltd (HAL) with a target price of ₹5,650, implying a potential upside of nearly 10% from the current market price of ₹5,115.50.
The brokerage highlighted HAL’s strong earnings beat and stable margin profile, noting a robust pipeline of both short- and long-term prospects. While near-term guidance appears weak, the firm emphasized the strength of the current order book and expected steady growth in ROH (repair and overhaul) business.
MOSL projects a 21% revenue CAGR for HAL over FY25–27, primarily driven by a manufacturing scale-up. It estimates EBITDA margins to stay strong at 29.8% in FY26 and 28.6% in FY27, supported by ongoing indigenization initiatives. With ₹40–50 billion in annual capex and stable working capital, PAT is projected to grow at a 14% CAGR, while RoE and RoCE are expected to remain healthy at 21.8% and 22.4% by FY27.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
